Tata Motors shares, increased by 7 percent in early trade. It hit a record high of Rs 949.60 on the Bombay Stock Exchange (BSE) following Q3FY24 results on Monday.
Tata Motors Share Price: The Changes Made
Nomura stated that the margins of Tata Motors’ Q3 JLR were far ahead of the estimates.
The success of Electrical Vehicle (EVs) is expected. It is believed that the EVs could drive the re-rating of Jaguar Land Rover (JLR). It consists of a ‘Buy’ rating call on the stock that has a target price of Rs 1,057 per share.
Investing Banking Company, Jefferies, raised their Earning per Share (EPS) for the year 24-26 by 7-11 percent. This consists of a ‘Buy’ rating on the stock that has increased its target price to Rs 1,100 per share.
The consolidated EBITDA of Tata Motors was 3 percent below the Kotak Institutional Equalities. On the other hand, Jaguar Land Rover (JLR) and the domestic business CV, the EBITDA came ahead of its expectations on richer product mix, and raw material tailwinds.
Moreover, in the domestic PV business, the EBITDA collided with higher product development expenses in terms of EVs. Thereafter, the impressive earning report of Tata Motors, top international brokerages consisting of Goldman Sachs, CLSA, and Macquarie have expressed their timely reviews.
Recommendations and reviews by Brokerages: Buy, Hold, or Sell?
- Goldman Sachs: Buy | Target- Rs 960
The Investing Company Goldman Sachs gave a Buy view. They raised their price target to Rs 960 from Rs 870. Goldman stated that the “Q3 beat is better than the expected Range Rover realization.” This has helped in improving the pricing support and CV mix.
They stated that the company’s capacity of Sanand-2 has eased the introduction of new models in the Indian car market.
- CLSA: Buy | Target- Rs 1,065
The Investing Group and, Capital Markets, CLSA Limited also gave a Buy rating similar to Goldman. They raised their price target to Rs 1,061 from Rs 955.
The Jaguar Land Rover (JLR) section has a strong grip while on the other hand, the Q3FY24 margin has crossed its estimates in the commercial section of vehicles.
- Macquarie: Outperform | Target- Rs 1,028
The Financial Services Company, Macquarie has asserted an Outperform view. The company raised its target price to Rs 1,028 from Rs 921.
The Jaguar Land Rover (JLR) disclosed that their margins have been improved even though there was a rise in Variable Marketing Expenses (VME).
- Nuvama Institutional Equities: Hold | Target- Rs 960
The Financial Company, Nuvama Wealth and Investment Limited has given a Hold view. The reason for this recommendation is because of the limited potential of the stock as well as a moderate volume outlook for Tata Motors.
The Q3FY24 EBITDA increased an approx. of 59 percent YoY. This is because of the improved Jaguar Land Rover (JLR) margins.
Nuvama stated that it expects a few challenges ahead its way including a rise in the cost of employees, an increase in freight cost, and an unfavorable JLR mix.
